Ford City Borough is pleased to announce that the 2026 Preliminary Budget is now available for public review at the Borough Building during regular business hours. A full copy of the 2026 Budget and Presentation will also be posted at the end of this announcement for residents who wish to explore the numbers, trends, and challenges in more detail.
This year’s budget reflects the Borough’s commitment to responsible stewardship of taxpayer dollars while maintaining essential services, addressing rising operating costs, and planning for major infrastructure needs.
Overview of the 2026 Financial Plan
The proposed 2026 spending plan covers all Borough funds, including the General Fund, Streetlight Fund, Fire Protection Fund, Library Fund, Public Utility Fund, and State (Liquid Fuels) Fund. Each fund is carefully structured to meet operational needs, preserve stability, and prepare for long-term obligations. The 2026 Preliminary Budget proposed NO TAX INCREASE for 2026.
General Fund Highlights
The General Fund remains the Borough’s largest operating fund, supporting police services, public works, administration, code enforcement, and general government.
Key revenue sources for 2026 include:
- Real estate taxes estimated at $429,657
- Act 511 taxes totaling more than $404,000
- Garbage fees, permit fees, fines, and intergovernmental aid
Cost drivers in 2026 include:
- A required 4.5% union wage increase and 5% non-union increase
- Rising health insurance and other benefits
- Significantly higher electric rates across all facilities
- Increased contributions to the Southern Armstrong Regional Police Department
After accounting for all revenues and expenditures, the General Fund shows a projected operating deficit of just over $42,000, which will be offset by existing fund equity, resulting in a modest year-end surplus of $32,283.
Streetlight Fund
The Streetlight Fund continues to feel the impact of rising electricity costs, with streetlight electric alone expected to exceed $50,000 in 2026. Despite this pressure, beginning fund equity allows the Fund to end the year with an estimated $30,312 surplus.
Fire Protection Fund
2026 includes the final payment on the Ford City Hose Company engine. This milestone reduces long-term obligations in the Fire Fund. After all revenues and expenses, the Fire Fund is projected to close 2026 with a surplus of over $42,000.
Library Fund
The Library Fund remains balanced, with real estate tax revenues directly supporting the Library’s operating expenses, programs, and utility costs throughout the year.
Public Utility Fund (Water)
The Public Utility Fund reflects water system operating costs, debt on the filtration plant, staffing, and utilities.
Notable items for 2026 include:
- A $5 monthly water rate increase, previously approved as part of PENNVEST financing requirements
- Rising electric costs at the treatment plant and pump facilities
- Ongoing debt payments for the Water Treatment Plant and raw water pump repairs
Even with an operating deficit of roughly $6,800, strong beginning fund equity results in a final projected surplus of more than $593,000.
State Liquid Fuels Fund
This dedicated fund will support:
- $200,000 in roadway resurfacing and curb improvements
- Routine materials and minor equipment purchases
- Additional sign and safety-related upgrades
The fund is expected to end 2026 with a surplus of nearly $59,000.
Personnel Costs and Borough Staffing
Personnel expenditures make up:
- About 18% of General Fund spending, and
- 42% of Public Utility Fund spending
The Borough’s workforce includes the Borough Manager, Public Works Director, four laborers, the Water Treatment Plant operator, and two administrative staff. Many of these positions divide their work between multiple funds, reflecting the cross-functional nature of municipal operations.
Challenges and Outlook
While 2026 is financially balanced across all funds, the Borough continues to face several underlying concerns:
- Most funds operate under structural deficits where recurring revenues do not match recurring expenses.
- Remaining fund equity has been used to keep budgets stable, but this approach is not sustainable long term.
- Rising electric costs, rising insurance premiums, and general inflation put continued pressure on all operating budgets.
- Significant capital needs remain across multiple Borough facilities, including roofs, HVAC systems, plumbing, and major building upgrades.
- In future years, the Borough will face increased debt service when repayment begins on the Waterline Replacement Project loan.
The Preliminary Budget presentation highlights these long-term concerns clearly and emphasizes that future tax increases will be required to responsibly address capital needs and restore long-term financial stability.
Public Participation
Borough Council will consider adoption of the final 2026 budget at its regular meeting on December 8, 2025. As part of this spending plan, the Borough is not proposing any tax increase, and the real estate tax rate will remain 19.4 mills for 2026.
Residents are encouraged to review the full preliminary budget and submit questions or comments to the Borough prior to adoption.
